Sugar prices are experiencing a notable decline, with May NY world sugar #11 (SBK26) down 1.97% and May London ICE white sugar #5 (SWK26) down 1.87%. This downward trend marks a one-month low for NY sugar and a three-week low for London sugar, driven by easing export concerns from India. The Indian government has confirmed it will not ban sugar exports this year, alleviating fears of reduced supply due to increased ethanol production amid global crude oil disruptions.
The bearish sentiment in sugar markets is compounded by higher production forecasts from both India and Brazil. India’s 2025-26 sugar output is projected to rise by 9% year-on-year, while Brazil’s Center-South sugar production has also increased by 0.7%. These developments suggest a looming global sugar surplus, with analysts predicting surpluses of up to 3.4 million metric tons for the 2026/27 crop year.
Market professionals should note that the current oversupply situation, coupled with production increases in major sugar-producing countries, could exert further downward pressure on sugar prices in the near term.
Source: nasdaq.com